The “Small Loan” Program in The Episcopal Diocese of Long Island
The Trustees of the Estate belonging to the Diocese of Long Island have designated certain of the unrestricted funds of the Diocese for use in supporting short term loans at low interest rates to cover the expenses of repairs, maintenance, or other urgent needs. Unlike mortgage loans or loans obtained from the Episcopal Church Building Fund (ECBF) for capital improvements or renovation projects, these loans are intended for urgent or emergency situations.* As such they are not available to support church programs.
- The maximum amount of each loan is $25,000
- Initial size of the fund for the Small Loan Program is set at $200,000
- Fixed interest rate for the life of the loan set at the Prime Rate on the date of execution of the loan agreement
- Loans are non-mortgage, requiring no lien on the property and no attorney fees or closing costs
- 3- or 5-year term Repayment is on a regular monthly amortization schedule
- No origination fee.
- No pre-payment penalty fee
Navigating the Application Process
(n.b. When a parish hopes to initiate an urgent small loan, it is recommended that the clergy-in-charge or lay leader contact the Diocesan Finance Office prior to completing the application.)
- Church downloads the application from the Diocesan website (click here for the link to the application form), completes the form, and prepares the required accompanying documents. The Church vestry prepares a resolution (should state date of meeting, who was present, details of loan request).
- Church provides duplicate copies of the following to the diocesan offices for an initial review and vetting process
- Vestry Resolution w/secretary’s certificate
- Completed application and accompanying documents
- Cover letter by the clergy person addressed to the Bishop requesting permission to apply for the loan with a brief narrative of the reason for the loan and what provisions the parish has made for the repayment of the loan
- The loan application should be sent to:
Attn: Finance Office Episcopal Diocese of Long Island
36 Cathedral Avenue
Garden City, NY 11530
- The application shall first be reviewed by the Chancellor, the Director of Finance, and a Trustees’ Loan Committee. In order for the Trustees’ Loan Committee to approve the loan the congregation must have both a current audit certificate and Parochial Report on file and must be current in its pledge in support of the Common Ministry of the Diocese. Any initial questions or concerns that emerge at this point shall be directed to the parish contact person. In some instances, a clarifying meeting may be required.
- Following approval by the Loan Committee the Bishop and Treasurer of the Trustees shall return the signed application to the congregation, which can then arrange with the Director of Finance for the transfer of the funds.
If you have questions about the Small Loan Fund program or application process, please contact Peter McNamara, diocesan Director of Finance at email@example.com or 516-248-4800 ext. 113.
Click here for the Small Loan Fund application form (fillable PDF)
You will need Adobe Acrobat Reader to view and download the above application form. It is available as a no-cost download from Adobe.
* Loans for capital projects or major renovations are provided through the Episcopal Church Building Fund (ECBF). ECBF loans are made to the borrower's diocese, rather than the congregation applying for the loan. This means that in the event of default, the Diocese of Long Island Trustees are liable. There is a well-defined procedure that specifies the criteria under which the Trustees will provide such a guarantee. Interested congregations will find this procedure, as well as the steps to follow to complete and submit an application for such a loan.